# Real-World Assets in DeFi

Tokenized RWAs have the potential to significantly reshape the decentralized finance landscape. Although DeFi has served as a proof of concept for on-chain finance, the vast majority of assets remain outside the blockchain ecosystem. Tokenizing RWAs is essential for expanding the digital asset industry by integrating traditional assets into blockchain frameworks.

The inclusion of RWAs into the digital asset ecosystem will foster a financial system characterized by improved liquidity, increased transparency, reduced systemic risks, and equitable infrastructure that mitigates conflicts of interest.

As of December 2023, the total value locked in RWAs within the DeFi ecosystem stood at approximately $5 billion, according to DefiLlama. Additionally, RWAs enable the development of innovative financial products. For instance, MakerDAO, a leading DeFi protocol, utilizes a variety of real-world assets as collateral for its stablecoin, DAI.

**Benefits of Real-World Asset Tokenization**

The tokenization of RWAs offers several notable advantages:

* **Liquidity:** Tokenized RWAs enhance market liquidity by enabling globally accessible trading conditions.
* **Transparency:** On-chain representation ensures transparency and allows for auditable asset management, reducing systemic risks.
* **Accessibility:** Tokenized RWAs broaden the user base for certain asset types, facilitating easier access through blockchain applications and enabling fractional ownership.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://betchains-organization.gitbook.io/betchain.gitbook/overview/rwa-basics/real-world-assets-in-defi.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.